Insulet Sees Attractive Valuation Despite More Conservative 2027 Outlook, RBC Says

MT Newswires Live11-06 01:49

Insulet (PODD) long-term growth prospects remain attractive despite a more conservative revenue outlook, with valuation looking attractive given its growth profile, competitive advantages and expansion opportunities in the US Type 1 and Type 2 diabetes markets, RBC Capital Markets said.

The brokerage said in a Wednesday research note that the revised fiscal 2027 outlook reflects tougher comparisons, less pricing benefit outside the US and increased competition. However, it said that the competition does not change its investment thesis.

RBC highlighted Insulet's competitive advantages, including Omnipod's unique disposable pump design, established pharmacy-channel relationships and an affordable pay-as-you-go model.

It also sees opportunities from Type 2 diabetes market penetration, international expansion, continuous glucose monitor integrations and the planned Omnipod 6 launch in 2027.

RBC kept its outperform rating and raised its price target to $180 from $160.

The company's shares were down 6.1% in Thursday afternoon trading.

Price: 154.87, Change: -10.15, Percent Change: -6.15

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